Hi all,
First time user here. I have a question regarding a proposed personal insolvency arrangement. I entered a pia last October in an attempt to solve my debt problems. The court issued a protective certificate on the 23rd October 2014 which expired on the 1st January 2015.
A meeting of creditors was called on the 18th December 2014. The bank which had a majority vote in the first threshold (65% required) rejected my proposal ('the veto') which resulted in my pia failing.
I had an investment property with this bank which was put into receivership in April 2014. I remained in contact with the receiver from day 1 to determine what course of action they would be taking as it would have an effect on my pia. In September 2014 the receiver noted (in writing) they were adopting a 'rent & hold' policy and not putting the property up for sale.
In January 2015 I discovered that the bank/receiver in question had the property sold (not sale agreed.....sold!) the property on the 22nd December 2014, just 4 days after they vetoed my pia proposal. My proposal was a third party lump sum offer which my pip was very optimistic would be accepted (lost business in 2011, unemployed since)
At no stage throughout the pia did the bank inform my pip this sale was occurring. Simply put they ignored the instructions of the court regarding the protective certificate and used the majority vote at my creditors meeting to block my proposal which they would not have been able to do if the property was sold prior to me entering a pia.
I contacted the ISI to discuss same and despite the s96 of the act stating this action is prohibited, they informed me that once a creditors meeting has been rejected the creditor take any actions they deem necessary. This was news to me! I suggested the bank had ignored the instructions regarding the protective certificate and were actively exchanging contracts for sale throughout my pia ( they didn't just advertise the property for sale, receive contracts and close the sale over 4 days, 2 of which were sat and sun) with a view to maintaining their veto all the while not informing my pip. The isi agent I spoke to said he'd never come across this situation before, but i got the impression he had no interest in helping me. Additionally, My pip offered no advice and has since run for the hills.
It should be noted I have no guarantee other creditors would have accepted my offer but this banks actions have vexed me. Like a lot of people on this site, I have lost everything I worked so hard for and just want a chance to start over.
I engaged a solicitor in January 2015 who wrote to the bank via the the receiver asking for clarification on which legal basis they sold the property while the PC was in effect. The response we got was,
"In circumstances where the protective certificate ceased to have effect on the 18th December 2014, there is nothing in the 2012 act which precluded the sale of the property at xxxx"
This couples with the isi's response. My solicitor reckons there is nothing I can do to fight this and should just accept the outcome.
My question is this. Are there any full disclosure requirements on creditors regarding debts (like the debtors) in pia's to prevent this action from occurring?
I have no doubt this bank knowingly hoodwinked my pip with the sale of the property with the intention of maintaining their veto and ultimately blocking my pia (don't know why?).
If nothing else I would like to inform others to be wary of this practice. So much for the 'spirit' of the insolvency legislation? I remain in limbo.
First time user here. I have a question regarding a proposed personal insolvency arrangement. I entered a pia last October in an attempt to solve my debt problems. The court issued a protective certificate on the 23rd October 2014 which expired on the 1st January 2015.
A meeting of creditors was called on the 18th December 2014. The bank which had a majority vote in the first threshold (65% required) rejected my proposal ('the veto') which resulted in my pia failing.
I had an investment property with this bank which was put into receivership in April 2014. I remained in contact with the receiver from day 1 to determine what course of action they would be taking as it would have an effect on my pia. In September 2014 the receiver noted (in writing) they were adopting a 'rent & hold' policy and not putting the property up for sale.
In January 2015 I discovered that the bank/receiver in question had the property sold (not sale agreed.....sold!) the property on the 22nd December 2014, just 4 days after they vetoed my pia proposal. My proposal was a third party lump sum offer which my pip was very optimistic would be accepted (lost business in 2011, unemployed since)
At no stage throughout the pia did the bank inform my pip this sale was occurring. Simply put they ignored the instructions of the court regarding the protective certificate and used the majority vote at my creditors meeting to block my proposal which they would not have been able to do if the property was sold prior to me entering a pia.
I contacted the ISI to discuss same and despite the s96 of the act stating this action is prohibited, they informed me that once a creditors meeting has been rejected the creditor take any actions they deem necessary. This was news to me! I suggested the bank had ignored the instructions regarding the protective certificate and were actively exchanging contracts for sale throughout my pia ( they didn't just advertise the property for sale, receive contracts and close the sale over 4 days, 2 of which were sat and sun) with a view to maintaining their veto all the while not informing my pip. The isi agent I spoke to said he'd never come across this situation before, but i got the impression he had no interest in helping me. Additionally, My pip offered no advice and has since run for the hills.
It should be noted I have no guarantee other creditors would have accepted my offer but this banks actions have vexed me. Like a lot of people on this site, I have lost everything I worked so hard for and just want a chance to start over.
I engaged a solicitor in January 2015 who wrote to the bank via the the receiver asking for clarification on which legal basis they sold the property while the PC was in effect. The response we got was,
"In circumstances where the protective certificate ceased to have effect on the 18th December 2014, there is nothing in the 2012 act which precluded the sale of the property at xxxx"
This couples with the isi's response. My solicitor reckons there is nothing I can do to fight this and should just accept the outcome.
My question is this. Are there any full disclosure requirements on creditors regarding debts (like the debtors) in pia's to prevent this action from occurring?
I have no doubt this bank knowingly hoodwinked my pip with the sale of the property with the intention of maintaining their veto and ultimately blocking my pia (don't know why?).
If nothing else I would like to inform others to be wary of this practice. So much for the 'spirit' of the insolvency legislation? I remain in limbo.